Head to Head Survey: Rackspace Hosting (RAX) and Marin Software (MRIN)
Rackspace Hosting (NYSE: RAX) and Marin Software (NYSE:MRIN) are both technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, earnings, risk and analyst recommendations.
Earnings & Valuation
This table compares Rackspace Hosting and Marin Software’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Marin Software||$86.01 million||0.51||-$11.61 million||($0.63)||-1.75|
Rackspace Hosting has higher revenue, but lower earnings than Marin Software. Marin Software is trading at a lower price-to-earnings ratio than Rackspace Hosting, indicating that it is currently the more affordable of the two stocks.
This table compares Rackspace Hosting and Marin Software’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
78.0% of Rackspace Hosting shares are owned by institutional investors. Comparatively, 32.1% of Marin Software shares are owned by institutional investors. 15.5% of Rackspace Hosting shares are owned by insiders. Comparatively, 20.8% of Marin Software shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This is a summary of current recommendations and price targets for Rackspace Hosting and Marin Software, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Rackspace Hosting presently has a consensus target price of $32.00, suggesting a potential upside of 0.03%. Marin Software has a consensus target price of $2.00, suggesting a potential upside of 81.82%. Given Marin Software’s stronger consensus rating and higher probable upside, analysts plainly believe Marin Software is more favorable than Rackspace Hosting.
Volatility and Risk
Rackspace Hosting has a beta of 1.55, suggesting that its share price is 55% more volatile than the S&P 500. Comparatively, Marin Software has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500.
Rackspace Hosting beats Marin Software on 6 of the 10 factors compared between the two stocks.
About Rackspace Hosting
Rackspace Hosting, Inc. (Rackspace) operates in the managed cloud segment of the business information technology (IT) market. The Company offers a portfolio of integrated IT solutions for common business needs. The Company offers services for certain applications, including e-commerce and Web content management sites, business-productivity applications, such as e-mail and collaboration, and data stores. The Company offers private, public and hybrid clouds in its approximately 10 data centers located on over four continents, in Microsoft Azure and Amazon Web Services data centers, as well as in customer-owned data centers. Its services include dedicated customer care and technical support, such as operating system patching, application monitoring, network and firewall configurations, and identity management. The Company has operations located in multiple cities across the United States, as well as in London, Amsterdam, Zurich, Hong Kong, Sydney and Mexico City.
About Marin Software
Marin Software Incorporated provides a cross-channel, cross-device, enterprise marketing software platform for search, display and social advertising channels. The Company’s enterprise marketing software platform is offered as an integrated software-as-a-service (SaaS) solution for advertisers and agencies. The Company’s platform enables digital marketers to manage performance of their online advertising campaigns. Its software solution is designed to help its customers measure the effectiveness of their advertising campaigns through its reporting and analytics capabilities; manage and execute campaigns through its user interface and underlying technology that streamlines and automates functions, such as advertisement creation and bidding, across multiple publishers and channels, and optimize campaigns across multiple publishers and channels based on market and business data using its predictive bid management technology.
Receive News & Ratings for Rackspace Hosting Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Rackspace Hosting Inc. and related companies with MarketBeat.com's FREE daily email newsletter.